Shrewd international property investors, says Lanice Steward, have traditionally always held stock in London, particularly central London, because it has tended to be one of the top three or four top property performers in the world along with Monaco, Brussels and New York.

Right now, said Steward, Anne Porter Properties London affiliate, Knight Frank, has reported that conditions are right for 'well advised' investors to build up their portfolios.

The message coming from Liam Bailey, Knight Frank's Head of Residential Research, is that weak sales performances have increased the stock available for renting. This, in turn, has lowered the rental returns, which for the first time in many years are now below 4%.

The good news from an investor viewpoint, said Steward, is that the current situation has resulted in many excellent buys becoming available for those who do their research and consult reputable agencies such as Knight Frank on these matters.

Knight Frank's report, said Steward, predicted that September would see the first significant rises in rentals and the start of a slow but ongoing upswing.

We much enjoy introducing potential South African buyers to Knight Frank, said Steward, but it has to be stressed, to quote Liam Bailey again, that London is not yet a one way bet just because capital values have fallen.

Investors, said Steward, have to take good advice to find the stock likely to appreciate the fastest in 2010 and 2011 and in the current situation they will also have to commit more equity than previously. However, she said, the report makes it clear that good buys are now available and that those who consult agencies that do their research can buy at significant discounts to what was paid 18 months ago.

For further information please consult Lanice Steward on telephone number 083 648 6655 or email lanice@anneporter.co.za.